Tripartite promotional assistance plan
76 F.T.C. 1104 · Oct. 9, 1969 · Digest No. 367
source volume section (76 F.T.C. 1104)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 367. Tripartite promotional assistance plan. The Commission advised a requesting party that the Commission would not proceed against it or its customers, or suppliers if the fol1owing described promotional assistance plan were implemented under the following circumstances: The requesting party has two plans for displaying advertising signs to be attached to grocery store shelves. Suppliers of grocery store products will pay the requesting party for the advertising of their products on these signs. Signs wil be of two kinds. One sign wil be a back-lighted moving color transparency; the other wil be a fixed sign of approximately the same dimensions. The moving sign wil he used as part of the requesting party Plan A; the fixed sign as part of the requesting party s Plan B. Both fixed and moving signs wil advertise one product and the same product during any given 2-week period.
All customers competing in the resaIc of the advertised product may elect to adopt Plan A, if they will. All such customers having an outlet doing in excess of $25 000 per week average gross business may have Plan A and Plan A only. Smaller customers may elect Plan B. Outlets wil he paid for the use of their space in one of two ways as they initially elect: (1) A percentage of the dollar value of the advertised prod uct purchased during the 2 weeks in which the advertisement runs; (2) a fixed sum per 2-week period determined as a percentage of average weekly gross sales during the preceding fiscal year. Those customers electing to have the moving display wil be charged service charge for each 2-week period. This wil be computed at 2 dollars ADVISORY OPINION DIGESTS 1105 per display per period. There wil be no service charge for those electing to have the fixed display.
The requesting party will , as third party intermediary, enter into written agreement with suppliers , if suppliers so desire, to undertake supplier obligations under Seetions 2 (d) and (e) of the amended Clayton Act as pro vided in Guide 13 of the Commission s Guides for Advertising Allowances and Other Merchandising Payments and Services. If there is a supplierthird party agreement that the requesting party wil undertake supplier obligations, suppliers wil perform as set forth in paragraph (b) of Guide 13. (File No. 693 7077 Released October 9 1969)